Financial News

Bank Of Ireland And AIB Top Salaries Revealed

The Irish government has revealed that hundreds of executives at its taxpayer-backed banks are on six-figure salaries.

Irish finance minister Michael Noonan confirmed that 24 staff at the Bank of Ireland and four from Allied Irish Bank (AIB) have pay deals worth 400,000 euros (£320,000) a year.

He also confirmed that more than 169 people working for Bank of Ireland earned between 150,000 and 400,000 euros (£120,000 to £320,000).

The Bank of Ireland's chief executive, Richie Boucher, is paid an annual package of 831,000 euros (£666,000) at the 15% taxpayer-owned firm.

Meanwhile, figures for AIB, which is effectively nationalised, revealed that more than 1,200 employees were paid in excess of 100,000 euros (£80,000) with 186 of those earning between 150,000 and 400,000 euros.

Ireland's banking system has had a government-sponsored bailout of up to 70bn euros (£61bn) since a banking collapse in 2008, according to the Irish Independent.

Top level salaries in AIB have now been capped at 500,000 euros (£400,000) - the figure reportedly paid to its chief executive David Duffy. He has also initiated a pay cut of 15% for top executives at the bank.

AIB was bailed out with almost 30bn euros of Irish government money, which now owns a 99.8% stake in the bank.

Ireland's opposition parties have opposed the remuneration rates, saying it is unacceptable to have huge pay packages at a state-owned institution.

The pay levels were revealed in written answers from Mr Noonan after questions were put to the government by Sinn Fein.

It accused the government of "fake outrage" with respect to the salaries amid massive austerity cuts.

Mr Noonan said the government shares the public anger over the salaries, however he claimed to have limited legal scope to reduce the pay of top-ranking executives.

AIB said in a statement that it "fully recognises the absolute requirement to reduce staff costs across all areas of our business in light of the levels of state support received and as we seek to return the bank to viability".

It added: "The bank has taken, and continues to implement, changes to its pay and benefits structure within the confines of contractual obligations and in seeking agreement with our staff and unions."